Cutting off investments in fossil fuels would be the road to hell for the United States. This is what JP Morgan’s chief executive Jamie Dimon said during a congressional hearing on a range of topics.
"Please answer with a simple yes or no, does your bank have a policy against funding new oil and gas products, Mr. Dimon?" Rep. Rashida Tlaib asked JP Morgan’s chief executive, after laying out net-zero plans that require a shift away from fossil fuels.
"Absolutely not, and that would be the road to hell for America," Dimon said in response. He went further, as well, saying the country needed to invest more not less in oil and gas.
"We aren't getting this one right. The world needs 100 million barrels effectively of oil and gas every day. And we need it for 10 years," Dimon said, adding "To do that, we need proper investing in the oil and gas complex. Investing in the oil and gas complex is good for reducing CO2. We've all seen, because of the high price of oil and gas — particularly for the rest of the world — you've seen everyone going back to coal."
Dimon’s statements come amid rising opposition among banks to increasingly stringent decarbonization rules, with some, including JP Morgan considering an exit from the Glasgow Financial Alliance for Net Zero, according to a recent report by the FT.
The reconsideration of their participation in the alliance came as a result of growing fears of litigation opportunities, rife in new climate-related requirements for the businesses they fund.
“I am close to taking us out of these global green commitments — I’m not going to allow third parties to create legal liabilities for us and our shareholders. It is immoral and irresponsible,” one unnamed senior executive at a U.S. bank told the FT. “What if we get it wrong, make a mistake or someone lies? Then the bank can be sued, that is an unacceptable risk.”
By Irina Slav for Oilprice.com
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The US has the largest car fleet in the world amounting in 2020 to 276 million vehicles. It is also the world’s largest consumer of crude oil estimated at 21.0 million barrels a day (mbd) and the second largest importer of crude after China estimated at 9.0-10.0 mbd.
Underinvestment in oil and gas in the US and the world at large will lead to shortages, staggering prices feeding into inflationary pressure and possible collapse of the US economy. All the printing of dollars won’t help America and its economy then.
Oil and gas are here to stay well into the future. They are projected to continue to drive America’s economy and the world’s for the next 100 years. There are no definite indications that this situation will change soon.
Producing oilfields of the world are depleting annually at an estimated average rate of 6%. This means that any expansion in oil production capacity should allow for this depletion and therefore should at least aim to reach 106 mbd in coming years.
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert
Air travel is but one very visible reminder of a key national industry requiring a robust supply of fossil fuels for years, if not decades, to come. For this nation and Americans to continue to derive the benefits of air travel, the president's, his administration's, and Rep. Tlaib's open hostility toward the vital role fossil fuels will continue to play in this nation's future must be permanently "grounded."
Representative Tlaib is not working for the 'common and greater good' of ALL Americans. Her motives must be questioned.
It's the new normal and will only get worse going forward. Oil production peaked in 2019 and will accelerate in its decline as renewables and EV's grow rapidly over the next 2 decades.